25 Jan 2013

Nokia shares down after dividend axed

4:41 pm on 25 January 2013

Shares in Nokia have fallen after the mobile phone company announced a halt to dividend payments despite its flagship model, the Lumia, making a profit for the first time in 18 months.

Pre-tax profit rose to €375 million for the three months to December, compared with a loss of €974 million in the same period last year.

Sales of smartphones fell 19% to $US15.9 million. However, Lumia smartphone sales rose to $US4.4 million, though analysts warn that was far from a recovery and the Finnish company is falling behind its rivals.

The company has cut costs and sold assets, and has now axed its annual dividend, to shore up cash reserves.

Mobile industry analyst Saba Shauket said Nokia is a shadow of its former self.